Parliament will soon amend Micro Small and Medium Enterprises Development Act to at least double the investment cap for MSMEs both in manufacturing and services sector.
The amendment bill which has already been introduced Lok Sabha in April this year has been referred to Parliamentary standing committee for vetting. The bill was laid in Rajya Sabha in August this year.
According to bill, the investment cap for micro enterprise in the manufacturing sector is to be doubled to Rs 50 lakh from the present Rs 25 lakh. In the service sector the investment cap for micro enterprise is to be raised to Rs 20 Lakh from the present Rs 10 lakh. The cap is higher for manufacturing as it included machinery cost, an official statement said.
For small enterprises the proposed investment cap would be Rs 10 crore instead of Rs 5 crore as at present. In the services sector, it would be more than doubled at Rs 5 crore from the present Rs 2 crore.
In the case of medium enterprises, the cap proposed is Rs 30 crore, three times more than the present cap of Rs 10 crore. In services sector, the cap would be Rs 15 crore as against Rs 5 crore at present.